IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i21p7434-d1273791.html
   My bibliography  Save this article

What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market?

Author

Listed:
  • Yan Lu

    (State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China)

  • Xuan Liu

    (State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China)

  • Hongjian Li

    (State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China)

  • Haoran Wang

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Jiajie Kong

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Cheng Zhong

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Mingli Cui

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Yan Li

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Xiaoqi Sun

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Jiadong Xuan

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

  • Tiantian Feng

    (School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China)

Abstract

In order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, China set the provincial weight of responsibility for renewable energy power consumption and established a renewable energy power absorption guarantee mechanism in 2019. As a market incentive policy, it has enduring effect on the low-carbon transformation of the power industry. Firstly, the operation mechanism of the renewable energy consumption guarantee mechanism is analyzed. The general framework, core elements and supporting measures are clarified. Secondly, a stock-flow diagram is constructed based on the system dynamics method. It contains the green electricity market sub-module, the green-certificate market sub-module and the excess power absorption market sub-module. Finally, multiple scenarios are set up to simulate the impact of the green-certificate market and excess power absorption market improvements on the installed capacity and tariff of China’s green power market. The renewable energy guarantee mechanism is an effective means to promote the consumption of green electricity in China. In addition, in the short term the cost of electricity for users has increased, but in the long term the cost of electricity shows a fluctuating downward trend. This study provides theoretical references for the formulation of clean and low-carbon policy objectives in the power industry and the optimization of market mechanisms.

Suggested Citation

  • Yan Lu & Xuan Liu & Hongjian Li & Haoran Wang & Jiajie Kong & Cheng Zhong & Mingli Cui & Yan Li & Xiaoqi Sun & Jiadong Xuan & Tiantian Feng, 2023. "What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market?," Energies, MDPI, vol. 16(21), pages 1-20, November.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:21:p:7434-:d:1273791
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/21/7434/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/16/21/7434/
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Xinfa Tang & Guozu Hao & Yonghua Wang & Youwei Wan & Jingjing Wang & Yan Luo & Musa Dirane Nubea, 2024. "Synergistic Development Pathways: An Exploratory Study on the Urban–Rural Mutual Assistance Model and Low-Carbon Transformation of Henan’s Power Supply Industry Towards Dual-Carbon Goals," Energies, MDPI, vol. 17(24), pages 1-19, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:21:p:7434-:d:1273791. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.